PracticeConsultingBarings chief gets expelled

Barings chief gets expelled

An accountants' Joint Disciplinary Scheme tribunal has expelled former Barings Group deputy chairman Andrew Tuckey from the ICAEW for four years for failure to control rogue trader Nick Leeson.

The profession’s senior watchdog found Tuckey, now a senior adviser with bank Credit Suisse First Boston, failed to perform managerial duties in relation to Barings Futures Singapore.

Leeson brought down Britain’s oldest bank after accumulating losses of #860m. Tuckey was deputy chairman of Barings plc, the Barings Group parent company, when joint administrators were appointed by the High Court on 26 February 1995 following Leeson’s unauthorised trading.

While the tribunal accepted Tuckey spent 80% of his time winning clients and admitted failings in management below him, it found he had ‘abdicated his management responsibility’ for BFS to others, a decision he wasn’t entitled to make. As a consequence, he failed in his duty to monitor or control Leeson’s activities, nor did he undertake a close examination of BFS’s profitability. The apparent profits reported by BFS during 1993 and 1994 formed a large part of the apparent profit of Barings plc.

In addition he failed to investigate the SLK Receivable, a fictitious document which claimed Barings would receive #50m from a New York. But the tribunal did accept Tuckey was not as culpable as some other managers were.

Tuckey, 57, already disqualified as a company director, accepted the judgement. In an agreed statement, he said his conduct fell below that expected of an ICAEW member. He declined to comment to Accountancy Age.

Full details can be found at the JDS website at www.castigator.org.uk

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